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TMI Blog2003 (8) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... Nil issued by the Directorate of Revenue Intelligence, New Delhi. 2. Briefly the applicants had imported Chinese origin pig hair bristles and had claimed exemption from special additional duty (SAD) under exemption Notification 34/98-Cus., dated 13-6-98. This notification was conditional to the effect that the imported goods should not to be sold from a place located in any area where any tax was chargeable on the sale or purchase of goods. However, contrary to that condition the applicants had sold these goods in Delhi where no sales tax was chargeable. Therefore a show cause notice to the applicants was issued as to why customs duty amounting to Rs. 51,01,438/- should not be recovered from the applicant and imposition of fine, penalty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the case of M/s. Pushpam Pharmaceuticals Company v. Collector - 1995 (78) E.L.T. 401 (S.C.) and Collector of Central Excise v. Chemphar Drugs Liniments - 1989 (40) E.L.T. 276 (S.C.). According to him the question of penalty does not arise in view of the judgment of Delhi High Court in the case of Pioneer Silk Mills Pvt. Ltd. v. UOI - 1995 (80) E.L.T. 507 read with the judgment of CEGAT in the case of M/s. Tarsem Singh Multani Sons v. CCE - 2001 (134) E.L.T. 753. In this connection, he referred to the judgment of CEGAT in the case of Commissioner of Central Excise, Jaipur v. K.E.C. International Ltd. - 2002 (144) E.L.T. 367 (Tri.) according to which interest under Section 11AB of the Central Excise Act (corresponding to Section 28AB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . No doubt the applicants have made a full and true disclosure of their acts of commission and omission. Thus the applicants have co-operated in the proceedings before the Commission, and become fully entitled to immunities from prosecution and penalty. 7. As regards interest, the Commission has considered the submissions of the applicants and the Revenue. Para 6 of the SCN brings out that the applicants have sold all the goods in local market and have violated the provisions of the Notification No. 34/98-Cus., dated 13-6-98 by selling the goods in Delhi where no tax is chargeable. Thus, the sale of the goods contrary to the declaration made by them at the time of import is not in question. What the applicants are saying is that there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 60/91-C.E., dated 25-7-91. The applicant has admitted before the Commission, that they were not entitled to the concession under this notification, during the period referred to in the show cause notice. Therefore, they have with full intent utilized the concession under exemption notification, which they knew they were not entitled to. Therefore, we are of the view, that by doing so, the applicants have enjoyed undue financial accommodation, which in our view, should not be allowed to be settled, without inflicting some reasonable interest liability, as may be levied under sub-rule (5), of Rule 57-I, read with Section 11AB of the Act. The provision of Section 11AB were inserted in the Central Excise Act with effect from 28-9-9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest is payable. However, interest in excess of 10% is waived. The applicants shall calculate the interest in accordance with the provisions of Section 28AB of the Customs Act and shall pay the same within 30 days of receipt of this order. The revenue shall re-check the correctness or otherwise of the calculation made and inform the Commission and the applicants. In case of any additional liability in relation to the calculation of interest is pointed out by the Revenue the applicants shall pay the same duty. (v) As the duty is being finally settled for Rs. 49,40,389/- as against the deposit of Rs. 51,01,438/- made by the applicant, the excess amount of Rs. 1,61,049/- shall be refunded by Revenue to the applicant within 30 days ..... X X X X Extracts X X X X X X X X Extracts X X X X
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